December 09, 2009

GDP Revised Down Sharply to Annualized 1.3% In 3Q

The Cabinet Office reported that GDP rose by 0.3% in the July-September quarter, rather than by 1.2% as initially estimated on Nov.16. In annualized terms, growth came to 1.3%, a downgrade from the preliminary figure of 4.8%. The media estimate was for 2.8% growth. The GDP deflator staged a fall of 0.5% rather than a rise of 0.2% as figured in the preliminary report. By category, capital investment dropped 2.8% from an initial estimated 1.6% decline, housing investment fell 7.9% rather than 7.7% and public investment fell 1.6% not 1.2%. Companies are cutting investments in plants and equipment to protect earnings, fueling concern about a recovery that's already under threat from deflation and a rising yen.

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